The market had widely expected a hold after inflation had
crept up recently, testing the upper limit of the bank's
tolerance range in March.

The bank lowered the key rate in January, its third
reduction since July, as it sought to stimulate Peru's
stuttering mining-fueled economy, which has slowed sharply over
the past year on lower global mineral prices and faltering
output.

"The most recent indicators on activity and business and
consumer sentiment continue pointing to a weaker economic
cycle," the bank said in a statement following its monthly
meeting.

But rising inflation and a sol currency that has slid
in value against the dollar have since dissuaded the bank from a
further loosening of monetary policy.
(Writing by Rosalba O'Brien; Editing by Ken Wills)